Aareal Bank is set to integrate Corealcredit's banking operations into the parent entity, after the management boards of both companies have resolved a corresponding plan.
The plan, which is still awaiting approval from the respective governing bodies, aims to achieve integration through splitting off Corealcredit’s operative banking business and merging it into Aareal Bank.
Following this, the Frankfurt office of Corealcredit will convert into Aareal Bank’s new Frankfurt branch and Corealcredit will become a subsidiary with no operative activities.
According to Aareal Bank, the split-off process is slated for completion by the end of the first half of 2015, following entry into the Commercial Register and the transfer of operations.
An additional reconciliation of interests has been agreed by the management board and employee representatives irrespective of the now-resolved integration under company law, which will not lead to any reduction in Corealcredit’s workforce.
By the way of integration of IT systems, and due to the marked decline in business volumes at Corealcredit, the reconciliation is set to regulate the impact on the staffing situation.
Around half of the existing jobs below 120 are set to remain at Aareal Bank’s new Frankfurt branch, once the associated organizational changes are in place.
The reconciliation of interests is expected to be effective once the split-off of operations are decided.
The continued existence of the Frankfurt branch has been guaranteed until 31 March 2017, as part of the reconciliation.
Aareal Bank, which traded as DePfa Deutsche Bau- und Boden Bank and forms part of the DePfa Gruppe until 2002, oversees property financing in more than 20 countries.